No Money, thats No Good!

**Kat**_2

I think if it works out you will make a profit including sol fees, vals, cost of move etc it's well worth doing. DH and I have been tempted before but are too scared to do it. Ours is more due to us owing Mum £50k EEK! from buying the house. Not in sig as don't have to pay it back yet but it is hanging over our heads and would like to get it gone

.NoMoney.

Thanks Kat - it is certainly a difficult one but very tempting due to the possibilities, although knowing my luck, any potential buyer for our house is probably going to find something wrong with it and therefore have to knock money off thus costing us potential profit.

On a plus side, I sweet talked the estate agent some more as the house had previously sold and fell through. She advised that the survey picked something up, but because the two parties were unable to negotiate a reduction to cover the repair costs the sale fell through, also, the buyer refused to give them a copy of the surveyor report.

As a result, the estate agent requested their own survey which was completed over the New Year so I now have a full up to date copy of the surveyors report of the potential purchase house, and it was free!

**Kat**_2

That's FAB! I think surveys should be free anyway as part of the estate agent pack and added to their fees (that way you only pay if you sell your house and buyers don't - kind of other way around and could throw up things that will be fixed cheaper than what you'd have to knock off etc) - could be more profitable for both parties.

.NoMoney.

I agree, the surveys should be free and provided to both parties involved and any urgent work that is flagged up should mean that sale prices are renegotiated to reflect this - especially if the level of work is rather expensive. In my case the survey has flagged that property maintenance will be required, as since the current owner has let the property out it has not had any maintenance, so the likes of the gutters, fascias, pointing etc require attention. The surveyor has estimated £7,500 + VAT as a precautionary cost, but this in his words would need doing over a 5-year period as you would your own annual spring clean.

Given this, I would still look to reduce the offer price to reflect that work needing to be done, also, this one is up for £120,000 and a house 4-doors down, almost identical, and in a lot nicer condition, with the bathroom in a functional room went for £115,000 so I am tempted to throw in an opening offer around the £108,000/£110,000 mark.

Apart from the above, nothing interesting to report.

jwil

Shame about the job, but it does sound like it would be a big hassle.

That's good news about the house, sounds like it might be worth giving it a shot! Maybe it's worth getting a couple of Estate Agents in to yours and asking them realistically what they think it will go for?

**Kat**_2

Do you know what other houses in your area like yours have sold for? It would be worth looking into that x

.NoMoney.

Kat and jwil - Thanks for the replies.

We have had our valued recently and a bracket of between £130,000-£135,000 was suggested with offers expected to be coming in around the £125,000-£128,000 mark.

A house on our road, smaller in size has sold for £125,000 (ours is bigger than all the others, albeit only slightly, as when the road was bombed in the war, our house was rebuilt over 2 plots).

However, I made an offer of £110,000 today, £10,000 under the asking price and the agent advised that this was rejected. Apparently, the asking price is £120,000 and he wants the asking price, even though he acknowledges a better house went for less a month ago, and his requires, according to survey atleast £10,000 spending on it.

He is renting it out, so his exact words to the estate agent was, if I don't get the AP then I will keep renting it as it doesn't cost me anything.

He also thinks, that because he has lots of interest he will get the AP, even though, the estate agent told me that all those interested have run a mile once they have been shown the survey (obviously buying the house and the immediate outlay to repair is too much). Out of 30 viewings we are only the 2nd to propose an offer, and the other person wanted to renegotiate as soon as they got the survey.

It's been on for 4-months, so I just advised the EA we will sit it out for another month or so and if he still hasn't sold he might reconsider, either that, or he will be forced to shell out to fix the issues.

**Kat**_2

Some people are so unrealistic! We think we are going to stay put now and extend but still having vals done next week - just to see what they think!

.NoMoney.

The EA rang me over the weekend and advised us that he won't lower his price, they have had 6 viewings since I viewed and not one of them has made an offer, their feedback was that it required too much effort if he was wanting them to meet the asking price - so could be time to play the long game.

However, another property we like has just been reduced to £110,000 which has also tempted our tastebuds (also will allow potentially more money towards debt repayments). It was one we looked at about 6-months ago but decided against it because it required a new kitchen and central heating - but with a £10,000 reduction in price it makes it doable.

That said, one thing that does spring to mind, and will seek clarification from my mortgage broker (unless anyone here knows) is this. If we buy said house for less than what our current mortgage is, will we, when we purchase it have to repay the different between the mortgage and the purchase price to the lender, or will they not bother us, as once the work has been done the house valuation will be greater than the mortgage?

Don't really want to go buying a house for equal/less than our mortgage and then be forced to use the money we have made on our house to settle the difference when it could be used for far greater things.

Anyhow, back to business, a relatively peaceful weekend here, we cleared out the loft and found some odd bits for ebay (girls clothes that they have both grown out of) and then went to B&Q to look at paint - need to redo the master bedroom and hallway before we can actively market ours - the master bedroom has tester pots on the wall when we looked to redecorate last year, and the hallway has artistic drawings from a 2-year old. We didn't buy though, as couldn't make a decision.

**Kat**_2

Yes I think you do need to repay the difference but in turn you would have a smaller mortgage costing less each month. Speak to an IFA though as I could be wrong.....